Time To Exercise Stock Options?

Some employees could benefit by exercising options before tax rate increases set for 2013.

This transcript has been automatically generated and may not be 100% accurate.

... the rarer the room ... okay ... are talking to their clients a lot about selling stock options now on tax rates are low ... I'm in a binder into a New Jersey has a claim as an executive of the biotech firm interesting hearing has a lot of options imeem player getting into very constipated fishing in the employee ... she was to make up that position and diversify anyway and low tax rates are low it seems like it's a good time to do it ... so aam they're looking at and how to handle that he has both incentive stock options and nonqualified stock options which give a different tax treatment ... and those rates can be potentially a lot higher next year ... right now that operates thirty five percent on end ... depending on the fiscal cliff negotiations we could have a top rate of thirty nine point six ... and then even over forty three percent if the Medicare surtax gets added on top of that ... so there's potentially a huge tax savings ... when think about selling options before the end of the year the renewed Take Moreno counters taxes as with any tax strategy ... need to look at the price of shares to the health of the company's huge you think of employers doing well and then share prices would be going up in the future or not ... aam ... advisers can use different kinds of options modeling flat Shoals methane etc to project you know and take a good look and do an analysis of whether this really is a good time for other reasons to sell ... the auction art exercise the option sell the shares ... if all these things are mine and it's the right time to do it this isn't a great time to do it because potentially into the sitting on taxes ... just remember as with any tech strategy ... you should never let the tax tail WAG the dog ... the ... the ...